(chinadaily.com.cn)
Updated: 2008-01-18 15:25

Desmond continued, "It is interesting to note, in spite of the strong growth and positive outlook of the country's economy, confidence among Chinese companies in most expectation indicators was somewhat down from the previous year (see Table 2). This trend can reflect the uncertainties of the national business environment and concerns about possible downside risks. It may be a healthy sign that business owners grow their businesses with cautious strategy."

Expectations for investment in 2008 are falling, although still in positive territory. Chinese mainland suffered the biggest fall in investment optimism out of all economies in the survey. Optimism for investment in new buildings next year fell 28 percent while that for investment in plant and machinery fell 13 percent, when compared to last year's figures.

"Apart from the expectation on selling price, all other indicators are still well above global average. Without any doubt, the positive results of the survey do indicate China remaining as a beacon for Asian market, as well as a major player in the global economy," Desmond concluded.

Remarks*: The figure is the percentage balance of the respondents who are optimistic less those who are pessimistic. The highest possible figure countries are able to record is +100 percent and the lowest is -100 percent.

Table2 –Chinese MainlandBusiness Confidence (Optimism/pessimism %*)

2008 2007 2006 Local economy 77 86 79 Turnover 87 85 86 Selling prices 28 29 16 Exports 25 29 26 Employment 56 66 49 Profitability 73 78 68 Investment in new building 47 75 58 Investment in plant & machinery 62 75 53

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